For quite some time, property investment in the UK has been a hot topic particularly in the lead up to the EU referendum where there was an element of concern around how the property market will behave. The very same uncertainty followed other periods in history where there may have been a referendum or a vote such as a General election or the Scottish Referendum vote.
The introduction of a 3% stamp duty charge on those properties owned by investors or people who also owned property in the UK or overseas was regarded as a major change to the UK property market.
The implementation of these changes turned many people away from the idea of investing in UK property and it could result in investors deciding to invest in foreign property. This has brought to light the possibility that many investors will also consider looking at the foreign market following the Brexit vote but this could be stopped by the decline in the value of the pound.
The decision to leave the EU resulted in the value of the pound decreasing and this resulted in any investor looking at the foreign property market having to pay more than they would have before the decision was made to leave the EU. However, in the long term the decision could cause further implications as the UK economy could once again fall into recession and this could see investors turning to the foreign markets in which they can make investments.
When the time comes for Britain to completely leave the EU, it must be assumed that UK citizens will have to jump through more hoops in order to travel around Europe and although it will be possible, it may not be as simple as it is now.
When it comes to finance, lenders located in foreign countries often offer those residents who are not part of the EU mortgage rates that are not particularly favourable. France is a perfect example of this where a 20% deposit is required as a minimum for EU citizens but for those who are not EU citizens the deposit amount can rise to 50%.
Regardless of the uncertainly, there is no doubt that foreign investment will still take place. There are a number of instances where international property investors have shown that they know exactly where to invest and when to do it. This can be seen from the Top 500 most powerful Arabs that shows that there are many investment companies and groups that are still making great shakes in the world of investment.
While it cannot be argued that the decision to leave the EU has affected the UK property market there is a hint of hope that this change has opened the door to further opportunities. Therefore, many investors who are looking at overseas property investments may still believe that they are financially viable.